"It's not Xbox 360, it's Xbox, and we think Xbox stands for entertainment. It's not just gaming, it's beyond gaming, it's so much more than that now.

"I think over the past couple of years we've really proved that gaming is core to our console, but we've been offering music through Zune and music, and we've built on third party applications like Netflix and LoveFilm.

"We really do feel we've made a mark on the entertainment arena and so we want to take that brand to Windows."

Xbox Music and Xbox Video will launch as part of the latest Xbox 360 dashboard update and arrival of Xbox SmartGlass and Windows 8 this Friday, October 26.